COCONUT CREEK, Fla., Sept. 21, 2022 (GLOBE NEWSWIRE) — Air India has signed definitive sale and leaseback agreements with Willis Lease Finance Corporation (NASDAQ: WLFC) (“Willis Lease”) for 34 CFM56- 5B installed on its Airbus A320 family fleet.
Motors will be covered by ConstantThrust from Willis Lease® program, which will provide significant reliability and cost savings over a traditional MRO shop visit program. This is the first ConstantThrust® contract for the sale and leaseback of aircraft engines by any Indian carrier.
As part of the sale of the transaction, Willis Lease will purchase from Air India 34 engines powering 13 Airbus A321s and 4 Airbus A320s. Thanks to its ConstantThrust® program, Willis Lease will provide spare replacement and backup engines, enabling Air India to avoid potentially costly and unpredictable shop visits on the engines powering a transitioning fleet of aircraft. Willis Lease will also have an in-country team to coordinate and manage the entire program and all logistics and transport involved.
Based in Florida, USA, Willis Lease is a leading aircraft finance company specializing in the leasing, financing and management of aircraft, commercial aircraft engine spares and auxiliary power units. ConstantThrust by Willis Lease® leverages these capabilities and its spare parts, engine and aircraft technical management services, as well as its aircraft engine maintenance, repair and overhaul (MRO) services, to provide programmatic support to airlines and rental companies around the world.
Speaking on the deal, Air India’s CCO, Mr. Nipun Aggarwal said, “This is a very unique and historic transaction that will see Air India eliminate the burden of maintenance and completely get rid of the risks associated with the uncertainty of maintenance costs associated with engines. which were not covered by any “Power by the Hour” program with OEMs. This transaction will allow Air India to reduce its operational risks, improve the reliability of its fleet, reduce its costs and optimize its cash flow.
“Air India has conducted a rigorous process to assess all options for managing the significant maintenance, operational risk and logistical burden these engines would have created, and we are proud that all the benefits of our ConstantThrust® the program has finally risen to the top,” said Brian R. Hole, President of Willis Lease. “ConstantThrust’s Air India selection® confirms our long-standing belief that traditional options are not the only options for airlines willing to spend time fully exploring the benefits of our programmatic solutions.
Willis Lease Finance Corporation
Willis Lease Finance Corporation leases spare large and regional commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers in 120 countries. These leasing businesses are integrated with engine and aircraft trading, engine leasing pools and asset management services backed by advanced technology through its subsidiary, Willis Asset Management Limited, as well as various end-of-life solutions for engines and aircraft equipment provided by its subsidiary, Willis Aeronautical Services, Inc.
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not place undue reliance on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activities and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions in global markets; trends in the airline industry and our ability to capitalize on these trends, including market growth rates and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate the purchase, sale and lease of equipment, collect amounts due and control costs and expenses; changes in interest rates and the availability of capital, both to us and to our customers; our ability to continue to meet changing customer demands; regulatory changes affecting flight operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the company’s annual report on Form 10-K and other ongoing reports filed with the Securities and Exchange Commission.
| CONTACT: | Scott B. Flaherty Financial director (561) 349-9989 |
